Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Summary verdict: Occidental today is a cleaner, safer, better-run company than at any point since the Anadarko deal. The OxyChem sale for $9.5 billion and the retirement of $8.6 billion of debt in six months have pulled the company back from a decade of balance-sheet brinkmanship. But when we strip away the drama, what remains is a price-taking producer of a commodity, carrying an 8% preferred stock it cannot cheaply escape until 2029, in an industry where OPEC sets the price of the product and the geology sets the cost of staying in place. It is an average business, recently improved, fairly priced. We hold our capital for wonderful businesses. This is not one. The business is simple to describe and we understand it well. Occidental takes oil and gas out of the ground and sells it at whatever price the world market offers that day.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-08-05), 8-K (2026-07-10), 10-Q (2026-05-05).
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